Types of Hospitality Markets

Chapter 2

Unit Essential Question

How do the various types of hospitality markets compare and contrast?

Essential Question 1

What are the differences What are the differences among hotel and motel among hotel and motel types?types?

Hotels and Motels

Full-Service Hotels• Provides a wide range of services

usually including a restaurant, bar, luggage assistance, room service, and many other amenities.

Hotels and Motels– Airport hotels:

• Hotels located near airports that reach a target market that desires a good night’s sleep before a trip.

• Convenient for meetings that require people to fly into a city at a more modest price compared to inner city hotels.

• Are spending thousands of dollars to change their image from being dowdy with poor services.

• Are becoming more luxurious.

Hotels and Motels– University hotels:

• Hotels located near major universities.

• Offer financially favorable convention centers (especially when those institutions offer a hospitality major).

• Offer conference amenities such as book stores, public atriums, and a diverse range of retail/entertainment shops and restaurants.

Hotels and Motels– Changes on the horizon:

• Major hotel and motel chains have diversified the lodging options they offer.

• Some chains are offering full-service hotels, suites, and extended-stay options.

• Upgrading services and amenities is a growing trend in all forms of the hospitality industry.

Hotels and Motels

Motels and Motor Inns• Hotels: Multistoried lodging facilities that

range in size from a limited number of rooms to hundreds of rooms.

Atlanta, Georgia

Hotels and Motels

Motels and Motor Inns• Motel: Lodging facilities located near

major highways and interstates.

Hotels and Motels

Motels and Motor Inns• Motor Inn: Lodging facilities usually

found on feeder highways and roads or that are usually one or two stories with parking in front of the room.

Hotels and Motels

Motels and Motor Inns– Most common lodging facility in the United

States.– Are becoming increasingly competitive with

hotels by offering more amenities than just a restaurant and bar.

Hotels and Motels

Limited-Service Facilities• Limited Service Facility: Primarily

provides sleeping rooms without expensive amenities.– Extended-stay Facility: Specialized limited

service facilities that offer residential style units with multi-room plans and kitchen facilities.

Hotels and Motels

Limited-Service Facilities– Tighter budgets have opened an opportunity for

limited-service properties and forced full-service lodging establishments to reconsider their marketing strategies.

– Suites and extended-stay facilities are attractive to families, business travelers, and individuals looking for housing in a new community.

Hotels and Motels

• Economy Lodging in Transition– The lodging industry is in constant change.– Customers want added amenities at rates that don’t

exceed their perceived value of the hotel.

The Ritz-Carlton Lodge, Reynolds Plantation

Essential Question 2

What is the concept of a What is the concept of a bed and breakfast and how bed and breakfast and how does it differ from other does it differ from other types of lodging?types of lodging?

Bed and Breakfasts

Types of Bed and Breakfasts• Bed and Breakfasts (B & Bs): Lodging

facilities that include breakfast in the cost of the room.– The concept evolved around the practice of renting

sleeping rooms in a home with shared common space.

– B & Bs are very popular in Europe and increasing in popularity in the U.S.

Bed and Breakfasts

Types of Bed and Breakfasts• B & B homestays: Private, owner-occupied

residences with up to five guest rooms.Cozy Cactus Bed and Breakfast, Sedona, Arizona

Bed and Breakfasts

Types of Bed and Breakfasts• B & B Inns: Commercially licensed

businesses operated in a building that provides overnight accommodations.– Guest rooms number from 4 to 25.

– Other meals may also be available.

Bed and Breakfasts

Types of Bed and Breakfasts• Country Inns: Commercially licensed

businesses primarily known for cuisine.– Guest rooms range from 4 to 20.

– Offers full service breakfast and dinner.

The Marshall HouseIn the heart of Historic Downtown Savannah

Bed and Breakfasts

Appeal of A Bed and Breakfast• Personal service

• Privacy

• Business travelers– B & Bs offer the same amenities of a hotel with

the comfort of home.– Flexible cancellation, check-in, and check-out

policies.– No children and no pets.

Essential Question 3

What are the main What are the main principles of a conference principles of a conference center or resort?center or resort?

Conference Centers and Resorts

Conference Centers• A large meeting venue surrounded by enough

hotels to accommodate multiple conventions or conferences simultaneously.– Important to city, county, and

state economies.

– Success depends upon hotel rooms, transportation, dining, and recreation.

Conference Centers and ResortsResorts

• Hotels or motels located in popular vacation areas that offer recreational activities related to or in addition to attractions in the area.– Range from dude ranches to casino hotels.

– Each resort caters to a different target market.

– Beaches and mountains are logical choices for resorts.

– Whoopies make resorts in the southwest attractive during winter.

Conference Centers and ResortsResorts

• Condominiums: Living quarters that are owned by private persons that are rented out to the public.

Conference Centers and ResortsResorts

• Timeshares: Involves buying a specific time period (one or two weeks) to spend at a vacation resort.– Price depends on the time of

the year chosen.

– Owners can swap dates or property with other timeshare owners.

Hilton Head,

South Carolina

Essential Question 4

How are the different How are the different types of restaurants types of restaurants differentiated?differentiated?

Restaurants

Dining OutTable-service Restaurants:

– Fine Dining• Provides the highest levels of

personal service and more choice of rare food and beverages in a formal or sophisticated setting.

• Prices are usually high and customers expect the best.

Restaurants

Dining OutTable-service Restaurants:

– Casual Dining• Offers a less expensive alternative to fine dining

with a friendly atmosphere.

• Informal décor, a casual ambience, and a familiar and appealing menu encourage repeat business.

Restaurants

Dining OutTable-service Restaurants:

– Theme Restaurants• Casual dining restaurants centered around a central

theme.

Restaurants

Dining OutTable-service Restaurants:

– Ethnic Restaurants• Offers a more distinctive dining experience,

depending upon a particular national or regional cuisine.

• A diverse U.S. population has increased the popularity of these restaurants.

Japanese Steakhouse & Sushi Bar

Restaurants

Dining OutTable-service Restaurants:

– Family Restaurants• Offers even more moderate prices and caters to the

entire family.

• Depends heavily upon customers with children.

• Alcohol is usually not sold.

Restaurants

Dining OutQuick-service Restaurants:

– Also known as fast-food.

– Largest market in the world for restaurant food.

– Is fiercely competitive.

– Target market are busy working families that find it easier to dine out than to cook.

– Characteristics include rapid service, appealing products, quality control, and reasonable prices.

Restaurants

Dining OutOn-site Food Service:

– Offered in dormitories, government buildings, corporations, and hotels.

– Competes with other types of food service that cater food for major events.

Essential Question 5

What is the ripple effect of What is the ripple effect of tourist dollars and how tourist dollars and how does it impact national and does it impact national and international tourism?international tourism?

Tourism

The Importance of Tourism• Huge sums of money are spent on

tourism themes and commercials to attract tourist dollars to a state.

• Exciting events with strong promotion result in tourism success even in the smallest places.

Tourism

The Importance of Tourism• The major interstate system in the U.S.

makes states visible and easily reached which opens opportunities for tourism dollars.

• All states compete for tourism dollars; tourism is a major revenue producer throughout the country.

Tourism

The Importance of Tourism• Tourism generates tax dollars,

increased sales, and new jobs.

• Fluctuations in tourism cause a ripple effect in advertising jobs, media development, and travel businesses from airlines to gas stations.

Tourism

The Importance of TourismTour & Travel Packages:

– Travel Package: A prearranged vacation.• Provides transportation, lodging, and other amenities

for one price.

• Whoopies and families are the main target market.

• All details of a travel package should be carefully disclosed to the consumer.

• The Better Business Bureau keeps track of companies that have poor track records with travel packages.

Tourism

The Importance of TourismInternational Tourism:

– Technology and a strong economy have made international tourism increasingly attractive.

– Depends upon the state of the economy, political stability, and strength of a financial currency.

– The hospitality industry must be aware of international tourists’ expectations.

– Cultural sensitivity is extremely important for international tourism.